Province Approves 4% Allowable Rent Increase for 2018
Housing is about to get more expensive for renters in BC. This week the BC Government set the legally allowed rent increase at 4% for the upcoming year. Landlords will be able to increase monthly rents by up to 4% in 2018.
For the record, Landlords can only increase the rent once in a 12 month period and must give the tenant’s three full month’s notice. You can calculate your rent increase here.
Annual rent increases are determined by a formula set by provincial regulation and is tied to the annual rate of inflation (inflation rate + 2%). This is the largest rent increase for British Columbian’s since 2012, and the second largest increase over the past decade.
According to Padmapper, Vancouver rents are still the highest in Canada. As per their July 2017 data, the median rent price for a one bedroom is $1990/ month. While the typical two bedroom rents for $3200/ month.
One bedroom rents are now up a staggering 14% year over year, while two bedroom rents are up just 3%.
The rent increases are sure to exacerbate the current housing crisis, but will ultimately help landlords shoulder the burden of historically low cap rates of around 2-3%. Either way, Vancouver Price to Rent Ratios are still higher than San Francisco if that’s any consolation for renters.